August 2015 NEWS & VIEWS - Auto Plus Auto...

1

NEWS & VIEWS

The Auto PlusSM team continues to grow as we welcome three new members to our executive team. I am happy to introduce new appointments for Mike Englert as Chief Financial Officer, Gary Desai as Chief Information Officer and Matt Flannery as General Counsel.

Welcome to the second edition of Auto Plus News & Views.

In this issue, you will find an interview with our newly appointed Chief Financial Officer, Mike Englert, who is working closely with the executive team on acquisitions and restructuring individualized supply agreements with our independents to create stronger, more profitable partnerships.

I also want to announce two new appointments to the executive team: Gary Desai as Chief Information Officer (CIO) and Matt Flannery as General Counsel.

Gary comes to us from Federal-Mogul, where he was the SVP and CIO. Prior to Federal-Mogul, he held the positions of Vice President of IT & Business Transformation at Honeywell International Corporation and Director of Information Services for General Motors Corporation. He brings over 30 years of IT leadership and expertise. Gary graduated from Northeastern University in Boston, MA, with an MBA in Management Information Systems.

As our new General Counsel, Matt Flannery will oversee all legal matters for Auto Plus. He comes to us from Goodyear Tire & Rubber Company, where he served as Senior Counsel. Prior to Goodyear, he held the positions of Senior Litigation Counsel at Cooper Tire & Rubber Company and Associate General Litigation Counsel for Jones Day Law Firm. He brings over 20 years of legal experience. Matt graduated from Temple University in Philadelphia, PA, with a JD cum laude.

We will highlight both these gentlemen in our September issue.

Also in this issue, two of our bannered independent partners discuss the unique features of our current technology platform, and Mike Buzzard’s column updates us on our new brand identity rollout.

We look forward to your feedback on these communications. Enjoy the summer, and, as always, thank you for your ongoing support and dedication to Auto Plus.

Brent Windom

Just Red Stripes.pdf 1 12/2/14 11:25 AM

Unt

itled

-1

112

/2/1

4 1

:23

PM

LETTER FROM THE CEO: BRENT WINDOM

August 2015

AP134395 Auto Plus eNewsletter_AUGUST_PDF_F2.indd 1 8/6/15 3:31 PM

2

NEWS & VIEWS

AN INTERVIEW WITH OUR CHIEF FINANCIAL OFFICER

This month, we had a chance to talk with Mike Englert, our newly appointed Chief Financial Officer, to discuss his role in the Auto Plus supply agreements, the “hub and spoke” distribution model, profitability of Auto Plus customers and the negotiation process with manufacturers.

1) What is your current role at Auto Plus?

a. My current role at Auto Plus is Chief Financial Officer and Secretary. This role encompasses all of the financial activities for the organization, as well as assisting our management team with all of our specific initiatives and improving the profitability of our business.

2) What is your role in signing new banner members?

a. For every deal that’s done with our company, I am involved with the majority of the financial review. I’m interested in the long-term benefits that the supply agreements provide to both Auto Plus and our customers. Because at the end of the day, the supply agreement strengthens our partnerships with customers over the long term, providing them flexibility through funding and equipment initiatives, which ultimately helps protect their profitability.

3) How does the Auto Plus “hub and spoke” growth strategy work?

a. We have our traditional distribution centers. They average anywhere from 35,000 – 150,000 square feet in size and that’s really the focal point of all of our distribution. The “hub” is what we’re developing in a lot of the metro markets that we serve today. Where we have a distribution presence, our goal is to expand our hub. That’s really to service that existing metro market, as well as provide service capabilities to our rural or contingent markets through the “spokes.” In areas that we don’t currently have a presence, we will create a presence, whether it’s through distribution center builds, or whether it’s through strategic acquisition.


Unt

itled

-1

112

/2/1

4 1

:23

PM

LEADERSHIP TEAM INTERVIEW: MIKE ENGLERT

August 2015

(Continued on next page)


3

NEWS & VIEWS


4) What is the greatest uncertainty facing Auto Plus right now?

a. The greatest uncertainty facing the aftermarket, and our greatest opportunity, is consolidation. We are poised today to lead the consolidation with our new ownership, accessibility to capital and a desire to expand.

5) Since a lot of the bannered customers are independent business people, are you planning to ramp up the banner program so that, from a financial standpoint, they can be more competitive and grow in their market?

a. Our banner program is really the lifeline of our business. It’s something that our company tracks weekly, if not daily. The more bannered independents we have, the larger our distribution model becomes nationally.

6) What are key drivers to increase the profitability of Auto Plus and your customers’ business?

a. We have three values that our Auto Plus team members live by: integrity through accountability, a passion for world-class customer service, and pride and commitment to our teams and a clean/safe environment. By providing world-class customer service, we’re going to make sure that the parts get there on time when they order them every time. We’re going to make sure that they’ve got the brands that they want. We’re going to make sure that our sales teams are dedicated to their support. We’re going to make sure that our internal customer support teams are there to support them. Integrity through accountability — if we say we’re going to do something, we’re going to do it. Not only is it going to help the independent customer become more profitable, it’s also going to help us grow as a company.

7) How do annual contracts and negotiating go hand-in-hand?

a. The vendor pricing is locked in based on the agreed upon terms and conditions, but we’re always negotiating if there’s a change in the market or if there’s a change in anything significant to our business. We want to make sure we’re optimizing volume pricing to provide the best products for the best price to our customers. So while we have long-term deals with our manufacturers, it doesn’t replace the fact that we’re always tweaking negotiating for a better deal for our customers.



Unt

itled

-1

112

/2/1

4 1

:23

PM


August 2015


4

NEWS & VIEWS


8) Do you use the technology for inventory control and pricing when you go back to the manufacturers to negotiate?

a. Yes. We try to use hard, specifi c facts with their teams. From a price shopping and price matching perspective, we have a dedicated team internally who do nothing but price shop. They compare our prices to that of all our competitors. Again, that information provides for ongoing negotiation and best products and best prices.


Unt

itled

-1

112

/2/1

4 1

:23

PM


August 2015

WHAT OUR CUSTOMERS THINK

“In this business, you’re going to buy from people that you like and trust; someone that you share the same vision and goals with, and a lot of the people at Auto Plus have been in the industry and with the company for years, so you have those relationships with them.”

“This business is always changing. No more old school ways. There are always new ways to do business or new technologies. Auto Plus is always testing and learning and evolving. No more old school days!”

–Roger Church, Church’s Auto, Drexel Hill, PA

“Auto Plus came to me with a program that really helped with some of the needs that we were facing. Unlike what was out there, Auto Plus created a program that was totally personalized to fit my business. And I still don’t see that kind of customization anywhere else today.”

“Auto Plus is and will continue to be successful because of their personal service and care. I consider them real partners. I know that when I call them for something, they are actually concerned. I’m not a number with them, I’m a person. We’re both successful because we both are invested.”

–Dwayne Myers, Dynamic Automotive, Frederick County, MD


Unt

itled

-1

112

/2/1

4 1

:23

PM


5


Unt

itled

-1

112

/2/1

4 1

:23

PM

NEWS & VIEWS

CUSTOMERS’ INSIGHT ON AUTO PLUS TECH

Our customers’ feedback is important to us at Auto Plus. This month, we sat down with two Midwestern bannered members to hear how they felt about our e-Pricing and e-Modeling tools.

The following are excerpts from interviews held with both Mike Smith, an Auto Plus independent distributor with five locations in Northern Indiana, and Richard Echterhacht, owner of an Auto Plus store in Iowa. The interviews, conducted in June, focus on the technology products our Auto Plus independents use to improve their business and overall profitability.

Mike SmithOwner, Standard Auto PartsHuntington, IN

One of the draws that made me select Auto Plus would be the management of the company, meaning the people. Secondly, and no less important though, were some of the offerings that Auto Plus has. I like the tools they offered, such as e-Modeling and market pricing.

When we set a price using the market-based pricing, we can be very confident that we’re offering our customers a price that is competitive in our market. And I would explain that further, we don’t set that price, our marketplace and our competitors dictate the prices we can sell at. But Don Poole and his team monitor the pricing that our competitors have in the marketplace, and they share that information with us so that we can be competitive in our marketplace. We get reports on a pretty daily schedule.


TECHNOLOGY REPORT

August 2015


6


Unt

itled

-1

112

/2/1

4 1

:23

PM

NEWS & VIEWS


The sales team makes contact with us at least once a week, but they’re always available for us when we reach out to them.

Our customers shop us either via phone or internet. If they like the price we have, they buy the part; if not, they shop somewhere else. My stores are targeted not solely at installers and commercial accounts, but the majority of our business is focused at those accounts. We also have retailers, but when we go out to visit our customers, we can explain to them that we have the Auto Plus program behind us, and we can explain with confidence that our prices are very competitive. If I can make that statement with confidence, and I do, because I believe I am competitive, the customers take that into consideration when they make their purchasing decision.

Auto Plus e-Modeling helps us serve the customers because when they have a need for a part, the ideal situation is for us to pull it off our shelves and sell it to them, rather than ordering it, making the customer have to wait. Now, with the e-Model tool, we can predict that part will become popular, and have it the first time the customer comes in and asks for it.

We call it VOIs, and that is one of the things that e-Modeling helps us with; it lets us know what vehicles are in our marketplace. There are a couple of my stores that are 20 miles apart from each other, but the parts we stock in those stores are different. So knowing the VOIs is crucial.

What I like about the management team at Auto Plus is that they have an attitude of “How can we help our customer?” So when they take an approach to me or any other store owners, the thought process on their mind is that they really have a sincere interest in my success, and that they want to know what they can do to help me. That’s the whole key right there, and that starts from the top and works its way down through the management team. I have not run into one person in the entire organization who does not have that attitude. If you need something, they will do their best to accomplish it for you.

Rich EchterhachtOwner, Good Guys AutoIowa City, IA

I worked for Napa for 15 years before going to work on my own, and after doing some research, I found out that Auto Plus was a great supplier, and they had great inventory selection and a lot of great technology tools.


TECHNOLOGY REPORT

August 2015


7


Unt

itled

-1

112

/2/1

4 1

:23

PM

NEWS & VIEWS


E-Modeling works like this: you decide your selling territory, and you pick the ZIP codes and then Auto Plus software uses registered vehicles from that zone. Then you can see specific information for your area. It allows you to sort on anything. For instance, you can sort from the number of vehicles, you can sort on the number of sales that the warehouse has sold, you can sort on the number of sales that you have sold and you can see how many times you’ve lost a sale on a particular item. So it really gives you the flexibility to tailor your inventory to the actual vehicles in your marketplace, allowing you to maximize your return on your investment of inventory by not stocking up on items that are outside of your area.

I don’t currently use the entire Auto Plus platform, but I do use some of their e-Pricing information. See, the way our system works, Auto Plus supplies each bannered customer with five pricing levels for each product and product category. If you look at what they (Auto Plus) recommend you sell a product for, and then you get on the internet and see what their competitors are selling it for, you are exactly on, I mean to the penny, at the price my competitors are selling their parts. Auto Plus stays current; they stay on top of things, so it’s really a good way to get the biggest return on your investment knowing what you should be charging in your marketplace.

Auto Plus’ prices are very solid. They are out there, they spend all of their time and have an entire department researching product pricing so that we don’t have to, and we can focus on the things we’re supposed to be focusing on.

It’s a great tool, I use it all the time, and I feel like it’s something no one else in the industry has.

TECHNOLOGY REPORT

August 2015


8

NEWS & VIEWS

Greetings,

The Auto Plus team has been working diligently to prepare for a complete overhaul of all internal assets with the newest Auto Plus logo. This includes updating all forms, apparel, trucks, signage, business cards, etc. The internal assets must be updated prior to an external release.

We are also undergoing updates to our Auto Plus program agreement so that they incorporate all new logo information. These new agreements will contain the latest logo usage and brand guidelines, as well as the updated rights for Auto Plus members to use our new logos.

Once all internal components are in place, we will be rolling out our bannered member and corporate location visits to access branding needs. We are estimating that this tour will occur in the fall of 2015. All local business development members (BDMs) will be working with store owners and managers to properly order new signage and complete logo requests.

We thank you for your continued patience and commitment to Auto Plus. We are looking forward to a brand-new-looking Auto Plus!

Mike


Unt

itled

-1

112

/2/1

4 1

:23

PM

BRAND UPDATE:

August 2015

Looking to score a custom garage makeover? By entering the Beck/Arnley Ultimate Garage Makeover, you could win a brand-new $10,000 garage! To enter, purchase all of your Beck/Arnley Auto Parts needs from Auto Plus. The more you buy, the more entries you will receive! For every $250 spent on Beck/Arnley products from Auto Plus, you’ll get one entry toward the Ultimate Garage Makeover. This program ends September 30th, so don’t delay! Start planning your custom garage today!ENTER TO WIN!

MIKE BUZZARD


9


Unt

itled

-1

112

/2/1

4 1

:23

PMNEWS & VIEWS

THINGS ARE RAMPING UP IN OLEAN, NY

The goal of Auto Plus is to be one of the nation’s largest auto parts distributors and suppliers. We most recently celebrated the opening of a new flagship store in Olean, New York. Olean, New York, has been a rapidly growing market for Auto Plus stores and is now home to our newest, four-story, flagship corporate store, Auto Plus Olean. After a local NAPA corporate store location closed, the previous store manager Randy Taylor and members of his team decided to come work for Auto Plus and open this new location.

Since mid-April, Taylor has been busy adding new Auto Plus bannered service centers to his customer base. He currently has 12 new bannered customers in addition to his estimated 75 additional accounts, all within a 10-mile radius of his store.

“I’m focusing on building my customer base in my area,” said Taylor, who offers “hot shot” delivery to all of his customers. “I want to make sure our backyard is taken care of before venturing further out, but I’ve already been getting requests for same-day delivery as far as Pennsylvania.”

In celebration of the new store opening, Auto Plus hosted a customer appreciation day and open house for all of the valued Auto Plus team members in the Olean area. The successful event had 12 manufacturer partners in attendance who were joined by over 200 local Auto Plus customers and employees.

Taylor’s store has already surpassed its first official month’s revenue projections, and the planning and development that went into this store’s opening is now a successful model that Auto Plus plans to replicate across the country.

GROWTH STRATEGY

August 2015


10

NEWS & VIEWS

NAME JOB TITLE LOCATION YEARS OF SERVICE

Robert Stepaniak Store Driver PO-Elizabeth 1Frederick Davis Parts Specialist SE-Lawrenceville 1Aaron Jones Store Driver SE-Chattanooga 1Garry Rock Store Driver SE-Williamson Rd 1Robert King Store Driver Neng-W Boylston 1Patrick Milott Retail Parts Specialist Neng-W Boylston 1Richard Walsh Store Driver Neng-Park Ave 1William Gilbert Store Driver MV-North East 1Kurt Kmetz Store Driver FN-Port Richey 1Heather Zinnert Store Driver FS-Bradenton 1Trace Edwards Store Driver WA-Roosevelt 1Edward Pugh Store Driver PO-Rocky River 1Jameel Champion Shuttle Driver MWD-Chicago 1Jeffrey Kelly Parts Specialist MN-Bloomington 1Jose Rosario Store Driver Neng-Northampton 1Gary Caldwell Divisional Sales Manager SE-Lawrenceville 1Kent Holloway Store Driver Neng-Webster 1


Unt

itled

-1

112

/2/1

4 1

:23

PM

“SUCCESSFUL COMPANIES HIRE SUCCESSFUL EMPLOYEES”

August 2015

Congratulations to our dedicated team members who are celebrating their anniversary with Auto Plus! Whether you’re new to the team, or you’ve been with us for years, we thank you for your continued support!



11

NEWS & VIEWS


Michael Sanuita Store Driver Neng-Campus 1Guillermo Gonzalez Sales Development Manager FS-Palm Beach 1Cole Paulson Store Driver MV-Bel Air 1Lance Weppler Machinist OWI-Marietta Machine Shop 1Susana Quiroga Warehouse Personnel MAD-Moorestown 1Tyler Houde Store Driver Neng-Haverhill 1Brian Schmidt Store Driver MV-Bel Air 1Anjalina Ramirez Customer Service Representative CEN-Northwest 1Maka Graham Store Driver MV-Crofton 1Christina Lee Office Clerk TXD-Houston 1Robert Evans Store Driver FN-Winter Springs 1Gerald White Store Driver MV-Severn 1Yajaira Nieves Warehouse Personnel MAD-Moorestown 1Delray Corry Store Driver MV-Severn 1Douglas Tappan Store Driver Neng-Milford 1Nathan Ritchie Store Driver WA-Olympia 1William Boakes Store Driver SE-Lawrenceville 1Brandon Spriggs Store Driver MV-Windsor Mill 1Leevee Estimo Warehouse Personnel MAD-Moorestown 1Nicole Hall IT Support Amherst 1Robert Day Shuttle Driver MAD-Harrisburg 1John Sorrels Warehouse Manager TXD-Dallas 1John Burke Warehouse Personnel CEN-Mason City 1Edgardo Valentin Warehouse Personnel MAD-Moorestown 1Rhonda Mechigian Store Driver SE-Athens 1Rachel Barragan Warehouse Personnel CEN-Mason City 1Steven Dietz Store Driver FN-Tampa Garsh 1Wren Doran Assistant Store Manager MV-Golden Ring 1Darren Martin Dispatcher MV-Westminster 5Todd Newell Warehouse Personnel CEN-Mason City 5Michael Hamm Retail Parts Spec-Key Holder Neng-Whitinsville 5Robert Jade Commercial Sales Support Neng-Lawrence 5


Unt

itled

-1

112

/2/1

4 1

:23

PM


August 2015




12

NEWS & VIEWS


George Oliver Warehouse Personnel MWD-Indy 5Alden Dean Dispatcher Neng-Holyoke 5Joseph Moriarty Store Driver Neng-Holyoke 5Christopher O’Brien Retail Parts Specialist Neng-Lawrence 5Duane Kinne Store Driver NE-Walton 5Scott Coleman Store Manager I NE-Owego 5Charles Epps Store Driver SE-Jackson 5Megan Pieri Assistant Store Manager MN-Crystal 5Richard Blake Store Manager III Neng-W Boylston 5Carl Dicesare Store Driver NW-Rochester 10Juan Robles Store Driver TO-Dallas Tx 10Brian Lindstead Store Driver NE-Hamburg St 10Russell Ferraloro Store Driver NW-Jamestown 10Bryan Rice Parts Specialist NW-Bath 15Jason West Warehouse Personnel MAD-Folcroft 15Sheryl Day Customer Service Manager CEN-St Louis 15Robert Gall Divisional Sales Manager MN-Hopkins 15Anthony Stephens Warehouse Supervisor NED-Stratford 15Brenda Proby Warehouse Personnel TXD-Dallas 15Jean Hamm Office Clerk MAD-Washington 15William Cody Sales Development Manager TO-Wichita Falls 20Ron Hummel Parts Specialist PO-Clearfield 20


Unt

itled

-1

112

/2/1

4 1

:23

PM


August 2015



August 2015 NEWS & VIEWS - Auto Plus Auto...

Documents

Transcript of August 2015 NEWS & VIEWS - Auto Plus Auto...